Madras High Court
Star Online vs Assistant Commissioner St on 8 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P. No.509 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.509 of 2025
and
W.M.P.Nos.599 and 600 of 2025
Star Online,
Rep. by its proprietor,
Mohammed Ali Safrin,
No.7, Aiswarya Complex,
Duraisamy Road, T.Nagar, Chennai 600 017. .. Petitioner
Vs.
Assistant Commissioner ST,
Nandanam Assessment Circle,
No.46, Mylapore Taluk Office Building,
Nandanam, Chennai 600 028. .. Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, praying to issue a Writ of Certiorari, to call for the impugned order
of the respondent passed in GSTIN:33AVSPS4311B1ZR/2018-2019
dated 29.04.2024 and quash the same.
For Petitioner : Ms.Divya
for N.Murali
For Respondent : Mrs.K.Vasanthamala
Government Advocate
Page 1 of 7
https://www.mhc.tn.gov.in/judis
W.P. No.509 of 2025
ORDER
The present writ petition is filed challenging the impugned order
passed by the respondent in GSTIN:33AVSPS4311B1ZR/2018-2019
dated 29.04.2024 .
2. It is submitted by the learned counsel for the petitioner that
during the period 2018-19, the petitioner was a dealer in Sim Card of
Aircel and was registered under the GST Act. It is also submitted that the
petitioner stopped its business activity and its registration was cancelled
on 01.06.2023. During the relevant period of 2018-19, the petitioner had
filed the returns and paid appropriate taxes. However, on scrutiny of
returns filed by the petitioner it was found that excess Input Tax Credit
has been claimed over and above that of the tax paid under the reverse
charging mechanism.
3. It is submitted by the learned Counsel for the petitioner that a
notice in DRC 01 was issued on 29.01.2024 followed by three reminders
viz., 29.03.2024, 12.04.2024 and 26.04.2024. However, the petitioner
neither filed any reply nor availed the opportunity of personal hearing.
https://www.mhc.tn.gov.in/judis
Hence, the respondent, passed the impugned order confirming the
proposal. It is further submitted by the learned counsel for the petitioner
that neither the show cause notices nor the impugned order of assessment
has been served on the petitioner by tender or sending it by RPAD,
instead it had been uploaded in "view additional notices" column in GST
Portal, thereby, the petitioner was unaware of the impugned order of
assessment. It is submitted by the learned counsel for the petitioner that if
the petitioner is provided with an opportunity, he would be able to
submit proper supporting documents to explain the alleged discrepancy.
4. The learned counsel for the petitioner would then place reliance
upon the recent judgment of this Court in the case of
M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner
of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated
10.06.2024, to submit that this court has remanded the matter back in
similar circumstances subject to payment of 25% of the disputed taxes.
The learned counsel for the petitioner would submit that they may be
granted an opportunity before the adjudicating authority to put forth their
objections to the proposal to which the learned Government Advocate
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appearing for the respondent does not have any serious objection.
5. By consent of both parties, the writ petition stands disposed of
on the following terms:
a) The impugned order dated 29.04.2024 is set aside.
b) The petitioner shall deposit 25% of the disputed taxes as
admitted by the learned counsel for the petitioner and the respondent,
within a period of four weeks from the date of receipt of a copy of this
order.
c) If any amount has been recovered or paid out of the disputed
taxes, including by way of pre-deposit in appeal, the same would be
reduced/adjusted, from/towards the 25% of disputed taxes directed to be
paid. The assessing authority shall then intimate the balance amount out
of 25 % of disputed taxes to be paid, if any, within a period of one week
from the date of receipt of a copy of this order. The petitioner shall
deposit such remaining sum within a period of three weeks from such
intimation.
d) The entire exercise of verification of payment, if any, intimation
of the balance sums, if any, to be paid for compliance with the direction
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of payment of 25% of the disputed taxes, after deducting the sums
already paid and payment by the petitioner of the balance amount, if any,
on intimation in compliance of the above direction, shall be completed
within a period of four weeks from the date of receipt of copy of this
order.
e) Failure to comply with the above condition viz., payment of
25% of disputed taxes within the stipulated period i.e., four weeks from
the date of receipt of a copy of this order shall result in restoration of the
impugned order.
f) If there is any recovery by way of attachment of Bank account or
garnishee proceedings, the same shall be lifted /withdrawn on complying
with the above condition viz., payment of 25 % of the disputed taxes.
g) On complying with the above condition, the impugned order of
assessment shall be treated as show cause notice and the petitioner shall
submit its objections within a period of four (4) weeks from the date of
receipt of a copy of this order along with supporting documents/material.
If any such objections are filed, the same shall be considered by the
respondent and orders shall be passed in accordance with law after
affording a reasonable opportunity of hearing to the petitioner. It is made
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clear that if the above conditions viz., 25% of disputed taxes is not
complied or objections are not filed within the stipulated period, four
weeks respectively from the date of receipt of a copy of this order, the
impugned order of assessment shall stand restored.
6. There shall be no order as to costs. Consequently, connected
miscellaneous petitions are closed.
08.01.2025
Speaking (or) Non Speaking Order
Index:Yes/No
Neutral Citation: Yes/No
spp
To:
Assistant Commissioner ST,
Nandanam Assessment Circle,
No.46, Mylapore Taluk Office Building,
Nandanam, Chennai 600 028.
https://www.mhc.tn.gov.in/judis
MOHAMMED SHAFFIQ, J.
spp
and
W.M.P.Nos.599 and 600 of 2025
08.01.2025
https://www.mhc.tn.gov.in/judis
